Punjab Assembly passes bill on capping private school annual fee hikes at 5%

The Punjab Assembly on August 10 unanimously passed a bill allowing the state government to cap private schools annual fee hikes at 5 percent. Education Minister Harjot Singh Bains introduced the Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Bill, 2026, on the concluding day of monsoon session of Punjab Vidhan Sabha. Under the bill, no unaided educational institution will be allowed to increase its fee by more than 5 percent annually.

The cap will apply not only to tuition fees but also to all mandatory charges and funds collected by schools. The bill defines fees to include tuition fees, development fees, annual charges, activity charges, smart class or technology charges, transportation charges where not separately contracted, laboratory and library charges, examination charges and any other funds.

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Forensic audits of schools

The Punjab government will conduct forensic audits of private schools to identify excess collections and ensure that the additional amount is refunded to parents. Violations will attract a fine of Rs 50,000 for first offence and Rs 1 lakh for second offence. The third offence could result in cancellation of affiliation.

Mann said the legislation marks a decisive move to curb profiteering in the education sector and ensure that private schools operate in the interest of students and parents rather than for commercial gain.

"Education is a noble and sacred endeavour and it is a public good, not a commercial enterprise to be exploited for profit. Ensuring access to quality education for each student of the state is the topmost priority of the Punjab government," he said.

"Our government has already broken the backbone of every unholy nexus in the state and they will not allow the education mafia to mushroom up in the state," Mann added.

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A district regulatory committee headed by a Deputy Commissioner will examine and regulate all fee hike proposals, he said. Targeting the previous Congress government, Mann said parents were forced to pay transport fees during the Covid period even when schools were shut and vehicles were not operating. He said such exploitation would no longer be allowed in Punjab.

The bill amends the Punjab Regulation of Fee of Unaided Educational Institutions Act, 2016. During the discussion, Congress MLA Pargat Singh said the legislation was originally enacted in 2016, when the fee hike ceiling was 8 percent.

"I am surprised that the CM held a press conference over this issue, claiming that 8 percent ceiling was dropped by the previous government," Singh said, challenging the treasury benches to produce any notification supporting the claim.

Singh also criticised the state government, saying a government counsel in the Punjab and Haryana High Court recently informed that the government would not implement the decision on retrospective recovery of excess fees from schools. "We say one thing in the Vidhan Sabha and something else in the high court," Singh said.

The House also passed three Bills related to universities: the Cloud University, Hoshiarpur Bill, 2026, the MS Digital University, Patiala Bill, 2026, and the Physicswallah Digital University, Patiala Bill, 2026, which were introduced by Education Minister Bains.

(With PTI inputs)